How to Budget on an Irregular Income as a Therapist
How to Budget on an Irregular Income as a Therapist
Running a private practice comes with a lot of freedom—and a lot of unpredictability. One of the biggest financial stressors for therapists in solo or group practice is managing money when income fluctuates. Some months are full. Others… not so much.
So how do you plan for your life when your income isn't the same every month?
Here’s a therapist-friendly approach to budgeting that works with irregular income—without spreadsheets, shame, or overwhelm.
1. Think in Percentages, Not Dollar Amounts
Instead of asking, “How much can I spend this month?” try asking, “What percentage of this income should go where?”
This is a simple way to create consistency, even when your revenue changes.
Here’s a starting framework to try:
30–50% → Personal Pay (this becomes your paycheck)
15-20% → Taxes (set this aside in a separate savings account)
20-30% → Business Expenses (systems, subscriptions, marketing, etc.)
5-10% → Profit or Savings (for emergencies, investments, or growth)
The exact percentages may shift based on your practice model and goals, but the principle stays the same: don’t spend everything that comes in. Give every dollar a job—even when it’s not predictable.
2. Create a “Base Budget” Using Your Minimum Monthly Income
If your income ranges from $5,000–$8,000/month, don’t build your lifestyle or expenses around the high months. Instead, base your monthly spending plan on your minimum average income—what you can rely on.
Then, when you have a higher-income month, you can:
Add to savings
Pay ahead on expenses
Invest in growth intentionally (instead of reactively)
This protects you from that stressful feast-or-famine cycle and helps you stay grounded during slower seasons.
3. Separate Your Business and Personal Finances
This might seem obvious, but it’s a step many therapists skip when starting out.
Set up a separate checking account for your business income and expenses. Then, transfer your “owner’s pay” into your personal account—just like a paycheck.
Why this matters:
You get used to living off a consistent amount
Tax time becomes so much easier
It’s clear how much the business earns vs. how much you keep
And if you’re ever unsure about how much to pay yourself? That’s where a bookkeeper (hi!) can help you set up a simple, sustainable system.
4. Build a Buffer
Aim to keep at least one month of business expenses in savings at all times. This doesn’t have to happen overnight—just set aside a little each month until you hit your target.
Having a buffer gives you space to:
Take a vacation
Handle a drop in sessions
Invest in something new without scrambling
Think of it as your “peace of mind” fund.
5. Review Monthly, Not Just at Tax Time
Budgeting isn’t about restricting yourself—it’s about noticing your patterns so you can make better decisions.
Set aside 15–30 minutes each month to review your income and spending. Ask:
What came in?
Where did it go?
What do I need to adjust next month?
A bookkeeper can help you with this too—so you’re not doing it alone.
Final Thoughts
When you give your money structure, you give yourself more freedom to show up for your clients, your family, and yourself.
If you’d like help setting up a simple, therapist-friendly money system, I’m here for you.
Want Therapist-Friendly Money Tips in Your Inbox?
I share simple, calm advice to help therapists feel more at peace with their finances—no spreadsheets, no stress. Just tips that make private practice feel easier and more sustainable.
No spam. Just calm, clear support for your practice—and maybe a bit of encouragement, too.